4. Federal Income Tax Rates: Corporate Tax Rate of 15% to 30% on the corporation's net income. Individual tax rates of 15% to 39.6% for salary paid.
5. Employment Tax: All salaries paid, including to an owner, are subject to employment tax.
6. Corporate Income Tax: Generally subject to state corporate tax.
7. Recommended Use: For specialized clients who plan to take a company public or who need a corporate structure for minor children.

LLC - Taxed As A Sole Proprietorship:
1. Limited Liability: Limited Liability for owner.
2. Number of Owners: One
3. Type of Participation: Owner actively participates in business.
4. Federal Income Tax Rates: Individual tax rates ranging from 15% to 39.6%.
5. Employment Tax: All earnings are subject to the self employment tax.
6. Corporate Income Tax: Subject to tax in some states.
7. Recommended Use: For small business owners who have liability concerns, but do not earn enough net income to need the active-passive income split of the S-Corporation.

LLC - Taxed As A Partnership, With All Active Partners:
1. Limited Liability: Yes.
2. Number of Owners: Two or more.
3. Type of Participation: All owners actively participate in the business.
4. Federal Income Tax Rates: Individual tax rates ranging from 15% to 39.6%. Each owner pays tax at their personal tax level.
5. Employment Tax: All earnings are subject to the self employment tax.
6. Corporate Income Tax: Subject to tax in some states.
7. Recommended Use: For partners who net less than $40,000 to $50,000 annually, who want maximum flexibility in ownership.

LLC - Taxed As A Partnership, With Active And Passive Partners
1. Limited Liability: Yes.
2. Number of Owners: Two or more.
3. Type of Participation: Owners may be an active participant or a passive owner.
4. Federal Income Tax Rates: Individual tax rates ranging from 15% to 39.6%. Each owner pays tax at their personal tax level.
5. Employment Tax: Earnings by an active participant are subject to employment taxation, but earnings by a passive owner are not.

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